Agtech Action | Week of 08.10.24 - 08.16.24
Agtech Action is a weekly newsletter highlighting and commenting on current events in the world of agtech
US undercounts bird flu cases in cattle, consumer prices rose in July, and Benson Hill stock listing moves to the Nasdaq. AI represents 41% of US VC deal value, Google may get broken up, and ‘fire the agriculture secretary’ says a political candidate.
Building agriculture technology is hard. Staying focused as agtech is tough with volatile trends, capital markets and news cycles. It is easy for agtech to get distracted. Agtech needs to avoid distractions. What are those? Check out this week’s newsletter to learn what those are.
Food and the World:
Persistent drought conditions expected through the fall in the Southern Plains
What’s going on with Illinois’ corn and soybeans?
The Biggest Wildcards and Questions Ahead of USDA's August WASDE Report
Program offers cover crop incentives for first-time growers
USDA increases 2024 corn production and demand, lowers ending stocks
How Agriculture Could Be Impacted by Any U.S. Recession
Farmland Values in Iowa Fall for the First Time in 5 Years
U.S. undercounts bird flu in cattle as farmers shun testing
Corn and soybean conditions hold steady
Fertilizer from human waste faces scrutiny but remains a profitable industry
U.S. farmers grow record soy crop, ditch pricier corn
Brazil’s second corn crop harvest wraps up with higher prices amid currency devaluation
As Soybean Prices Plunge, 8 Charts to Explain the Biggest Changes in USDA's August WASDE
How Agriculture Could Be Impacted by Any U.S. Recession
What’s going on with Minnesota’s corn and soybeans?
U.S. to expand bird-flu testing of beef in slaughterhouses
More crops, more farming practices should get a share of SAF credits, says Vilsack
Fertility Costs Are in Focus As Farmers Consider Cutting Back
Low food inflation noted in July consumer prices report
U.S. Consumer Prices Rose Moderately in July; Annual Increase Slows to Below 3%
USDA to take ‘additional step’ in testing beef from former dairy cattle for bird flu
ALDF lawsuit against Perdue chicken labeling dismissed
Corn, soybean progress in this state ahead of five-year trends in all reported categories
July e-grocery sales up 9% from a year ago
Agtech in the News:
Cargill Internal Memo Describes Structural Overhaul to Streamline Company
How Landus Is Blazing a New Path in Ag Retail
Hydrosat Launches First High-Res Climate Satellite
How farmers and tech teamed up to better test crops
For Farmers, Are AI Chatbots Worth the Risk?
Dairy herd health data is lagging
Growing biomass-based diesel production drives demand for animal fats, waste oils, and grease
Sens. Elizabeth Warren, Bob Casey question Kroger's use of electronic pricing in stores
Fonterra and Superbrewed Food collaborate to advance postbiotic protein tech
Chinese foodservice – Part 1: A market in transition
Using seaweed and mushroom waste in chicken feed could boost Africa's food security
Benson Hill Announces Listing Transfer to The Nasdaq Stock Market LLC
Mission Barns unveils ‘novel, scalable, adherent’ bioreactor for cultivated meat, fat
The Scoop Podcast: Ag Retailer Shares Takeaways from Testifying on Capitol Hill
Dangerous herbicide used on California crops banned
US Considers a Rare Antitrust Move: Breaking Up Google (will this roll over to ag?)
US retail sales of plant-based milk by numbers: Coconut is up, almond is down, soy and oat are flat
Bühler and NRGene Canada open North American Insect Center
Fun:
Alex Harrell Shatters Soybean World Record With 218-Bushel Yield
Vance: ‘Fire the agriculture secretary’
Meet a Family That’s Betting the Farm on a Wild Idea. Literally.
Helpful Resources:
Q2 2024 US VC Valuations Report
When is a tractor more than ‘just’ a tractor?
Q3 2024 PitchBook Analyst Note: Fintech M&A Review: Middle-Market Valuation Analysis
IPO Watchlist: 10 European startups most likely to go public
Private equity fund performance turns a corner
Interesting Reads:
Vending Machines: Farm-to-Table 2.0?
Farmland Values in Iowa Fall for the First Time in 5 Years
Some Farmers May Now Have to Repay the Emergency Relief Program Payments They Received From USDA (so it was a loan, not relief)
Risk, insanity, and the 50% startup rule!
AI eats up 41% of US VC deal value, with help from Big Tech bucks
Not Even the Inside of Your Fridge Is Safe from Decorating
The Derecho 4 Years Ago Wasn't the Only Reason Corn Rallied To $8
Chemical found in rocket fuel detected in fruits, dairy and meat: Consumer Reports
Inside a Slaughterhouse: The Human Cost of Your Meat
Farm income is down in Plains, say ag bankers
Farm Animals Are Hauled All Over the Country. So Are Their Pathogens
GreenOnyx Sets Another Industry Quality Standard for its Flagship Fresh Superfood Wanna Greens®
USDA Misses Another Chance to Help Farmers of Color
Finance:
IFM Investors partners with GrainCorp on Australian sustainable aviation fuels
Nearly 30% of VC deals are flat or down rounds
Contra Costa County backs Arbor Fund VI with $50M ticket
Nest establishes evergreen fund of one to invest in forestry
Australian water looks calm before the predicted storm
Stafford Capital Partners’ $1B carbon fund begins deployment
Terrantic Clinches $3.5M for Digitized Supply Chain in Oversubscribed Seed Round
UK Agtech PheroSyn Receives VC Backing from Tall Grass Ventures
Cargill Partners With Goanna Ag for Tech-Centric Irrigation Pilot in the Mississippi Delta
Illinois Secures $111 Million for Climate-Smart Agriculture Practices
Theme of the Agtech Week: Distractions
The world of startups and ventures is exciting! New technologies emerge everyday; you meet someone who is building something novel, interesting and you want to be a part of the excitement! With that excitement comes with not only A LOT of opportunities, but also A LOT of distractions. Agtech has plenty of distractions. What are those?
I stress (see prior editions) that agtech needs to focus on the basics:
Business model and market
Talent and ensuring talent has proper resources and support
Funding and getting funding without strings attached
Naturally, the distractions in agtech include, but are not limited to the following:
Latest trend, or fad, that does not fit with your business model or market. I’m looking at you all that slap the word ‘AI’ in your deck! Does it fit with your go-to-market? If it does not, then it’s a distraction.
Science exercise vs. building a business. Too much of agtech feels like a science project. Cool, shiny tech but no clear business economics. Stop chasing patents, and spinning wheels (money) making the perfect product. Just go a sell it!
Gluttony. The popular sentiment in venture is to accumulate; accumulate talent, assets, capital, etc. This is a gluttonous approach and can lead to danger for agtech (see agtech startups that went public, or backed off on SPACs). Get only what you need and if you think you need more, seriously take a second look at that.
I have plenty more, and I’m sure you do as well, distractions to list. Chasing investment when you don’t need it is another example but let’s leave the rest for another newsletter. Distracted agtech is susceptible to many pitfalls including a fast burn rate, incorrect go-to-market, aligning with the wrong strategic goals and partners, among others. Sometimes the best thing is to do nothing. Stay the course, don’t get distracted.
Thanks for reading.
BD
Brandon Day is the Chief Operating Officer of The Yield Lab Institute, the global agtech think-tank, ecosystem builder, non-profit arm of The Yield Lab global network of venture capital funds. The views, opinions and commentary expressed are solely those of Brandon Day.